Wp(C)/29173/2022 Of Panamaram Service Cooperative Bank Ltd v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 6 DAY OF SEPTEMBER 2022 / 15TH BHADRA, 1944WP(C) NO. 29173 OF 2022 PETITIONER: PANAMARAM SERVICE COOPERATIVE BANK LTD.PANAMARAM P.O., WAYANAD DISTRICT-670121 REPRESENTED BY ITS SECRETARY, PIN – 670121 BY ADV G.KEERTHIVAS RESPONDENTS 1INCOME TAX OFFICER AYAKAR BHAVAN,KALPETTA-673122., PIN – 673122KALPETTA-673122., PIN – 673122 2JOINT COMMISSIONER OF INCOME TAX (APPEALS)OFFICE OF THE INCOME TAX DEPARTMENT,RANGE-II, KOZHIKODE-673001. 3THE COMMISSIONER OF INCOME TAX (APPEALS)AYAKAR BHAVAN,KOZHIKODE DISTRICT-673001. 4PRINCIPAL COMMISSIONER OF INCOME TAXAYAKAR BHAVAN, KOZHIKODE – 673001. W.P(C) No.29173 of 2022 ] 5NATIONAL FACELESS APPEAL CENTREC BLOCK, SPM CIVIC CENTRE, NEW DELHI - 110001, REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NFAC), PIN – 110001 THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 06.09.2022, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: ] J U D G M E N T Dated this the 6[th] day of September, 2022 Aggrieved by Ext.P1 demand notice issued under Section156 of the Income Tax Act, 1961 and Ext.P2 order issued underSection 271E read with Section 269T of the Income Tax Act,1961, the petitioner is before this Court. 2. The petitioner states that by Ext.P1 order, a penalty of₹43,84,36,490/- has been imposed on the petitioner underSection 271D and by Ext.P2 order of the Joint Commissioner ofIncome Tax, the petitioner is required to pay 45,64,02,929/-₹along with penalty leviable under Section 271E of the IncomeTax Act. The petitioner states that aggrieved by Exts.P1 and P2,the petitioner has filed Exts.P3 and P4 appeals before theCommissioner of Income Tax (Appeals) and that pending theappeals, if coercive proceedings are taken against thepetitioner, the petitioner will be put to untold hardship and loss. W.P(C) No.29173 of 2022 4 ] 3. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents. 4. Ext.P1 is a levy made by the respondents underSection 271D of the Income Tax Act, 1961. Ext.P2 is an orderissued under Section 271E read with Section 269T of theIncome Tax Act, 1961. Aggrieved by those orders, the petitionerhas filed Exts.P3 and P4 appeals before the 3[rd] respondent.The petitioner states that the petitioner has a very fair chance ingetting the impugned orders reversed in the appeals. 5. In such circumstances, enforcement of the impugned orders pending the appeals filed by petitioner would beunjustifiable. The petitioner would state that the 3[rd] respondenthas already forwarded the appeal to the National FacelessAppeal Centre. In the facts and circumstance of the case, the writ petitionis disposed of directing the 5[th] respondent to consider and passappropriate orders on Exts.P3 and P4 appeals preferred by thepetitioner, in accordance with law, within a period of three W.P(C) No.29173 of 2022 5 ] months. Till the respondents pass orders on the appeals preferred by the petitioner, any coercive proceedings pursuantto Exts.P1 and P2 shall stand deferred. Sd/- N. NAGARESH, JUDGE smm/ 06.09.2022 ] APPENDIX OF WP(C) 29173/2022 PETITIONER EXHIBITS Exhibit1TRUE COPY OF THE ORDER DATED 26.7.2018ISSUED BY THE 1ST RESPONDENT UNDERSECTION 271D READ WITH SECTION 269SS OFTHE INCOME TAX ACT AGAINST THEPETITIONER. Exhibit P2 TRUE COPY OF THE ORDER DATED 26.7.2018ISSUED BY THE 1ST RESPONDENT UNDERSECTION 271E READ WITH SECTION 269SS OFTHE INCOME TAX ACT AGAINST THEPETITIONER. Exhibit P3TRUE COPY OF THE APPEAL PREFERRED BY THEPETITIONER AGAINST EXHIBIT P1 DATED30.8.2018 BEFORE THE 3RD RESPONDENT.Exhibit P4TRUE COPY OF THE APPEAL PREFERREDAGAINST EXT P2 ORDER DATED 30.8.2018BEFORE THE 3RD RESPONDENT. Exhibit P5TRUE COPY OF THE ORDER DATED 28.07.2022ISSUED BY THE 4TH RESPONDENT TO THEPETITIONER. Sd/- N. NAGARESH, JUDGE smm/ 06.09.2022 ] APPENDIX OF WP(C) 29173/2022 PETITIONER EXHIBITS Exhibit1TRUE COPY OF THE ORDER DATED 26.7.2018ISSUED BY THE 1ST RESPONDENT UNDERSECTION 271D READ WITH SECTION 269SS OFTHE INCOME TAX ACT AGAINST THEPETITIONER. Exhibit P2 TRUE COPY OF THE ORDER DATED 26.7.2018ISSUED BY THE 1ST RESPONDENT UNDERSECTION 271E READ WITH SECTION 269SS OFTHE INCOME TAX ACT AGAINST THEPETITIONER. Exhibit P3TRUE COPY OF THE APPEAL PREFERRED BY THEPETITIONER AGAINST EXHIBIT P1 DATED30.8.2018 BEFORE THE 3RD RESPONDENT.Exhibit P4TRUE COPY OF THE APPEAL PREFERREDAGAINST EXT P2 ORDER DATED 30.8.2018BEFORE THE 3RD RESPONDENT. Exhibit P5TRUE COPY OF THE ORDER DATED 28.07.2022ISSUED BY THE 4TH RESPONDENT TO THEPETITIONER. Exhibit P6TRUE COPY OF THE JUDGMENT DATED03.01.2022 IN WP(C) 30703/2021 OF THISHON'BLE COURT